Adslot Ltd ABN 70 001 287 510 and controlled entities Half-Year Financial Report 31 December 2016 Lodged with the ASX under Listing Rule 4.2A.3

The half-year financial report does not include full disclosures of the type normally included in an Annual Financial Report. Accordingly, this financial report should be read in conjunction with the Annual Financial Report for the year ended 30 June 2016 and any public announcements made by Adslot Ltd during the interim reporting period in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

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HALF-YEAR REPORT - 31 DECEMBER 2016 APPENDIX 4D (Rule 4.2A.3) RESULTS FOR ANNOUNCEMENT TO THE MARKET

December 2016

December 2015

Movement

$

$

$

%

Total revenue from continuing operations

4,148,852

3,838,746

310,106

8%

Net loss attributable to members of the parent

entity after tax (3,814,162) (4,149,565) 335,403 8%

Net loss attributable to members of the parent entity (3,814,162) (4,149,565) 335,403 8%

Dividends

The Company has not proposed or declared to pay dividends.

Earnings Per Share

December 2016

December 2015

Weighted average number of ordinary shares on issue used in the calculation of earnings per share

1,190,524,562

1,046,054,649

Basic loss per share (cents)

(0.32)

(0.40)

Diluted loss per share (cents)

(0.32)

(0.40)

Net Tangible Assets per share

December 2016

June 2016

Number of ordinary shares on issue used in the calculation of net tangible assets per share

1,280,818,427

1,113,293,224

Net tangible assets per share (cents)

1.52

0.44

Audit

The Half-Year Financial Report has been subject to review by Grant Thornton Audit Pty Ltd and is not subject to dispute or qualification.

Directors' Report

Your Directors submit the financial report of the Company and it controlled entities ("the Group") for the half- year ended 31 December 2016.

Directors

The names of Directors who held office during or since the end of the half-year:

Mr Andrew Barlow: Non-Executive Chairman Mr Ian Lowe: CEO and Executive Director Mr Adrian Giles: Non-Executive Director Mr Geoff Dixon: Non-Executive Director* Mr Ben Dixon: Executive Director Mr Quentin George: Non-Executive Director Ms Sarah Morgan: Non-Executive Director

* Resigned 30 November 2016

Result of Operations

Group results for the 6 months to December 31 2016, benchmarked against the corresponding 6-month period in 2015, were:

6 months to

December 2016

6 months to

December 2015

Revenues from continuing operations

$4,148,852

$3,838,746

Total revenue and other income

$4,564,292

$4,233,270

EBITDA (loss)

($1,671,565)

($1,457,221)

NPAT (loss)

($3,814,162)

($4,149,565)

Revenue from continuing operations for the 6 months to 31 December 2016 grew by 8% compared to the corresponding period to 31 December 2015. With a lower expense base this revenue growth also translated into improved EBITDA and NPAT results for the period.

Review of Operations and Future Developments

Trading Technology, comprising License Fees and Trading Fees, continued to drive revenue growth over 1H17, increasing by 36% against the previous corresponding period to $2.7 million.

As expected the company saw declining revenues from the Services (down $0.3 million) and Adserving (down

$0.2 million) legacy parts of the business. These declines were more than offset by the increases in Trading Technology revenues.

Revenue from continuing operations grew to $4.1 million and Total Group Revenue grew to $4.6 million.

During the reporting period the Company signed a material contract with groupm to deploy Symphony into multiple new markets. Fully deployed into one EMEA market already, the Company is on track to complete deployments into multiple new markets across APAC and EMEA in 2H FY17.

The cadence of new market deployment activities for FY17 will accelerate throughout CY17 as teams within Adslot and groupm become increasingly proficient.

During the reporting period the Company raised $18m via a Rights Issue and Placement. The primary objective of the capital raising was to capitalise on the strategic position the Company has established by accelerating product development, and increasing the scale of the sales organisation in key growth markets.

Future Developments

Licence Fees will continue to grow in 2H FY17, as will the value of media transacted over the Symphony platform which provides the longer term strategic value to the Company. Trading Fees in 2H FY17 are much less predictable, due largely to the nascent stage of the industry. Growth in Trading Fees will be in line with industry adoption of Automated Guaranteed trading and the success of the Symphony-Adslot integration.

The Company has built a strategic position by combining the buy and sell side technology and creating global capabilities. With the funds to increase its investment in product & development and sales & marketing Adslot is well placed to execute its growth plan.

Dividends

The Directors do not recommend the declaration of a dividend. No dividend has been declared or paid during the half-year.

Auditor's Independence Declaration

The lead auditor's independence declaration for the half-year ended 31 December 2016 under Section 307C of the

Corporations Act 2001 is set out on page 17.

This report is signed in accordance with a resolution of the Board of Directors.

On behalf of the Directors.

Andrew Barlow Chairman

Melbourne

27 February 2017

Adslot Ltd. published this content on 27 February 2017 and is solely responsible for the information contained herein.
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